Sir please can you explain how to treat bad bebts in consignment
For eg- In tye Q its written – A debtor for Rs1000 to whom goods were sent by consignee, became insolvent and only 0.5 in a rupee was recoverable.
Sir what will the treatment in
i) in the books of consignor
-in consignment account
-In consignee account
ii) in the books of consignee
Assuming there is no del credere commission, the entry will be:
Bank ac dr 500
Bad debt ac dr 500
To consignee 1000